The cognitive and artificial intelligence systems market worldwide has been on the rise in recent years and is projected to reach even higher heights in the near future. According to data presented by Trading Platforms, revenue from AI systems is projected to increase by 120% by 2024 to $110B. In 2020 the AI market is expected to reach the $50B mark for the first time.
AI Revenue CAGR from 2019-2024 Projected at a Significant 20.1%
Artificial Intelligence spending has come a long way since 2015 when global spending was just at $5B. In 2020 revenue from AI systems reached $50B, and is projected to rise to $110B by 2024 at a compound annual growth rate (CAGR) for the 2019-2024 period of 20.1% “Companies will adopt AI — not just because they can, but because they must,” said Ritu Jyoti, program vice president, Artificial Intelligence at IDC. He added, “AI is the technology that will help businesses to be agile, innovate, and scale.”
The economy has become more digital in more recent times which means that organizations are trying to innovate with artificial intelligence to aid in their digital transformation just to stay competitive.
Better Customer Experience and Employee Productivity Leading Factors for AI Integration
In a study of use cases of AI, the numbers point to organizations wanting to improve their customer experience or increasing employee productivity. Organizations use AI for Automated Customer Service Agents, Sales Process Recommendation and automation to help deliver better customer experience in their webstores. Productivity is also increased through the use of AI through automated threat intelligence and prevention, and IT automation. These uses account for nearly a third of all use cases.
Retail and Banking to Spend the Most on AI
As the data above suggests, the retail sector will primarily focus on the improvement of their customer experience through the use of chatbots and recommendation algorithms. The banking sector meanwhile will not only use AI in the same way as retail when it comes to Automated Customer Agents but largely to aid in their fraud analysis and investigation which accounts for 6.1% of case uses.
North America Will Dominate AI Spending but Japan with the Strongest CAGR at 32.1%
Throughout the forecast period up until 2024, the US will still account for more than half of all AI spending powered by the strong retail and banking industry. Western Europe will be the biggest largest users of AI primarily in retail and banking but as well as discrete manufacturing. China will be the third-largest source of AI revenue with state/local government, banking and professional services as the industries leading AI integration.
During the forecast period, Japan will see the largest five-year growth with a CAGR of 32.1% with Latin America as the next largest growth opportunity with a CAGR of 25.1%.